Global Contact Center Software Market Growth Factors
Growing Demand for Automating Customer Care Services
One of the most vital market drivers of the growth of the contact center software market is the increasing demand for automating customer care services. Customer care executives are now responsible for maintaining more robust relationships with customers to provide long-term value for the business. They are also required to focus on retaining existing customers to ensure brand loyalty. This prompts organizations to opt for automation to reduce the time needed to address regular customer queries and utilize the time to resolve intricate issues and attract new customers.
Organizations are increasingly implementing Artificial Intelligence (AI) and machine learning technologies to enhance customer experience. For instance, AI-based chatbots coupled with social media management tools can aid customers in finding solutions to their problems on their own with great ease. Robotic Process Automation (RPA) is expected to emerge as an inevitable part of the contact center software market over the forecast period.
Enhanced Customer Experience through Omni Channels Solutions
Companies with omnichannel contact center solutions realized higher customer retention rates than others. According to the above table, the average profit margin per customer recognized by companies with omnichannel services was 61%, substantially higher than other companies. Moreover, customers emphasize self-service facilities while ranking their contact center experiences as self-service facilities save time and help reach the desired solutions through any device at any time.
Additionally, omnichannel contact center solutions can be easily integrated with cloud-based technologies, allowing seamless communication through any device. As per the survey, 85% of the interactions at contact centers would not involve a human agent and would instead result from machine learning and AI used to automate contact centers.
Global Contact Center Software Market Restraint
Inability to Achieve Average Speed of Answer (ASA) and Low First Call Resolution (FCR)
Various factors such as reduced customer satisfaction, agent satisfaction, high abandonment rates, increased handle time and increased contact center costs result from low FCR and high ASA. Although several contact center solution providers are undertaking multiple measures to ensure that customer queries are handled within the stipulated time, there is still a significant gap between the number of incoming phone calls attended and the number of questions resolved in the first call. This can be measured by contact center metrics such as ASA and FCR, which determine the performance of contact centers.
While customers' expectations have been increasing consistently, organizations have not been able to match the desired level of customer service. Contact center metrics suggest that customers should not be waiting in a call queue for more than 20 seconds. In other words, the ASA cannot be more than 20 seconds. If the customer waiting time surpasses 20 seconds, call volume is negatively affected, i.e., the number of calls attended on a day.
Global Contact Center Software Market Opportunities
Growing Preference for Cloud-based Contact Center Solutions
The rising adoption of internet-based services has resulted in several organizations adopting cloud-based contact centers. The flexibility offered by cloud-based solutions enables agents to communicate across any location and easily access customer information in real-time. Cloud-based contact center solutions also eliminate the need for agents and employees working full-time from office premises, allowing agents to be recruited from any part of the globe.
Enhanced system reliability and secured offerings also encourage companies to opt for cloud-based contact center services. Contact center system providers build an active infrastructure where the processing of end-use infrastructure takes place on two sites, thereby providing enhanced security.
Segmental Analysis
The global contact center software market share is divided by solution, service, deployment, end-user, enterprise size, and region.
Based on solutions, the global market for contact center software is divided into Automatic Call Distribution, Computer Telephony Integration, Call Recording, Customer Collaboration, Dialer, Interactive Voice Response, Reporting and Analytics, Workforce Optimization, and Others.
The Interactive Voice Response solution dominates the global market for contact center software. It is estimated to reach a value of USD 13,965 million by 2030 at a CAGR of 16.2%. Organizations are increasingly adopting IVR solutions as they reduce the burden of transferring calls from one agent to another and ensure a reduction in customer queuing time.
The Customer Collaboration solution is expected to emerge as the fastest-growing segment, accounting for USD 6,455 million by 2030 at a CAGR of 28.2%. Customer collaboration solutions are expected to witness increased demand due to social media platforms' high implementation rate for interacting across various industries to retain customers.
The Computer Telephony Integration solution is the second-largest segment. It is estimated to reach a predicted value of USD 9,900 million by 2030 at a CAGR of 18.9%. This technology enables agents to perform a wide range of activities in minimal time and with better productivity. This software monitor, records, and routes the incoming calls to the most appropriate person in the department. These parameters are predicted to drive the demand for this software type over the forecast period.
Based on services, the global market for contact center software is divided into Integration and Deployment, Support and Maintenance, Training and Consulting, and Managed Services.
The Integration and Deployment service holds the largest share in the contact center software market. It is estimated to reach a value of USD 17,955 million by 2030 at a CAGR of 21.3%. Integration and deployment services are required to assure that the new systems are in-line with the existing methods of various departments and to integrate the latest designs with the existing ones, thereby avoiding loss or theft of data. The above mentioned parameters are boosting the growth of this segment.
Managed Services are anticipated to emerge as the fastest-growing segment, accounting for USD 7,065 million by 2030 at a CAGR of 26.7%. Managed service providers have comprehensive technical expertise in the domain. They can offer enhanced support to organizations while installing systems, upgrading the latest software, and procuring tools to manage applications and infrastructure.
The Training and Consulting service is the second-largest segment. It is estimated to reach a value of USD 14,530 million by 2030 at a CAGR of 23%. Players operating in the contact center software market are constantly aiming to increase productivity, efficiency, and performance, which is often accomplished by implementing new technologies. However, a company is accountable for training employees to use new systems in a way that ensures maximum benefits. Moreover, various companies require consultation for selecting suitable software depending on their requirements. As a result, training and consulting services are gaining popularity among several organizations.
Based on deployment, the global market for contact center software is divided into Hosted and On-Premise.
The On-Premise mode of deployment dominates the global contact center software market. It is estimated to reach USD 62,350 million by 2030 at a CAGR of 18.2%. Several organizations prefer the on-premise deployment method for contact center software as access does not require an internet connection and enables easy customization of software as per the client's business processes. Due to these factors, the on-premise segment dominated the global contact center software market.
The Hosted mode of deployment is the fastest-growing segment. It is estimated to reach a value of USD 73,015 million by 2030 at a CAGR of 25%. The demand for hosted Deployment is projected to rise significantly over the forecast period. The hosted or cloud deployment allows users to quickly access data from any location without occupying much space. Many contact center software providers, such as Avaya, Inc., Cisco Systems, Inc., SAP SE, Mitel Corporation, Alcatel-Lucent Enterprise, and Genesys, have started providing their solutions on the cloud.
Based on enterprise size, the global market for contact center software is divided into Large Enterprises and Small and Medium-sized Enterprises.
Large Enterprise holds the most dominant contact center software market share. It is estimated to reach a value of USD 69,125 million by 2030 at a CAGR of 19.7%. Large enterprises have vast customer data that must be managed effectively in local offices and overseas. These enterprises implement contact center systems to address this data, which allow professionals to focus on customer retention and critical queries.
Small and Medium-sized enterprises are the fastest-growing segment. It is estimated to reach a value of USD 65,985 million by 2030 at a CAGR of 23.4%. Various large enterprises have adopted contact center solutions to manage their vast databases of customers efficiently. These solutions enable the customer relationship department to gain access to information from other departments, thereby reducing the time involved in managing query trackers, reducing time on calls, and improving first-call resolution rates.
Based on end-user, the global market for contact center software is divided into BFSI, Consumer Goods and Retail, Government, Healthcare, IT and Telecom, Travel and Hospitality, and Others.
The IT and Telecom industry holds the largest share in the global contact center software market. It is estimated to reach a value of USD 27,020 million by 2030 at a CAGR of 18.2%. The implementation of workforce optimization software has increased significantly in the IT and telecom sector owing to the need to manage the vast network of employees.
Consumer Goods and Retail is expected to emerge as the fastest-growing segment, accounting for USD 11,730 million at a CAGR of 27% by 2030. The need for contact center software and services in the retail industry is driven by the rising demand among organizations to ensure customer satisfaction and overcome the challenges involved in the customer retention process. Moreover, the rapid growth of the retail industry in the past few years has resulted in the development of massive databases across the globe, requiring contact center agents to invest substantial time in sorting out customer data during an ongoing call.
BFSI is the second-largest segment. It is estimated to reach an expected USD 32,955 million by 2030 at a CAGR of 21.2%. Financial institutions are essentially adopting contact center software to effectively manage calls and customers and ensure the security of transactions.
